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8/12/2019 Chapter-14 en FDI
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Investment Registration (Local and Foreign)
Capital Machinery Import
GDP in the Manufacturing Sector
Private Investment as Percentage of GDP
Employment Opportunities
Investment Climate
The Doing Business 2011 report published by the World Bank and IFC ranked Bangladesh 122nd
in the Ease of Doing Business: Global Rank among 183 economies (Graph:14.1). However,
Bangladesh was ranked 24th in terms of protecting investors. Besides, the country was also
ranked 78th in getting credit and 86th and 100th in starting a business and paying taxes
respectively.
Graph 14. 1: Ease of Doing Business: Global Rank
Source: Doing Business 2011, IFC, The World Bank 2012
Actual Investment (Local and Foreign)
Actual Foreign Direct Investment - FDI:
The actual FDI recorded US$913.3 million in 2010 and the actual FDI recorded US$ 1136.4 million in
2011. The following Graph 14.2 presents the recent trend in FDI inflows:
1
79105
89122
107132 142
160
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Source:Bangladesh Bank
Table 14.1 indicates that equity is the major component of FDI followed by reinvestment and intra-
company borrowing.
Table 14.1: Actual FDI Inflow to Bangladesh by Components(In Million US Dollar)
Year
Components
Equity Reinvestment Intra-Company Total FDI
2001 233.80 65.00 55.70 354.50
2002 133.80 116.80 77.70 328.30
2003 156.10 170.20 24.00 350.30
2004 155.90 239.80 64.70 460.40
2005 425.60 247.50 172.20 845.30
2006 503.70 264.70 24.10 792.50
2007 401.60 213.20 51.50 666.30
2008 809.25 245.73 31.33 1086.31
2009 218.55 364.94 116.67 700.16
2010 519.98 364.62 28.72 913.32
2011 431.85 489.63 214.90 1136.38
Source: Bangladesh Bank .
Total FDI, 2001 ,
354.5Total FDI, 2002,
328.3
Total FDI, 2003,
350.3
Total FDI, 2004,
460.4
Total FDI, 2005,
845.3Total FDI, 2006,
792.5Total FDI, 2007,
666.3
Total FDI, 2008,
1086.3
Total FDI, 2009,
700.2
Total FDI, 2010,
913.3
Total FDI, 2011,
1136.4
I n m i l l i o n U S D o l l a r
Graph 14.2: Trend in FDI inflow in Bangladesh
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Actual Local Investment
There is no organisational statistics to identify the actual status of the BOI -registered local
projects. However, by a sample survey conducted by BOI, it is observed that 68percent of the
registered local investment proposals were either implemented or at the varying stages of
implementation.
Table 14.2 presents annual statistics on the projects registered with BOI since FY 2001-02. It
would appear from the table that in FY 2001-02, a total of 2,964 projects involving Tk. 1,05,400
million were registered with BOI. After a decade in FY 2011-12 with 1,955 projects the
proposed investment has increased to Tk 8,78,932 million.
Table 14.2: Private Investment Proposals Registered with BOI
Fiscal
Year
Local Investment
Proposals
Registered
Foreign /JV
Investment
Proposals
Registered
Total Investment
Proposals
Registered
Growth
in
Project
Value
(%)Project
s
Project
Value
(Million
Taka)
Projec
ts
Project
Value
(Million
Taka)
Project
s
Project
Value
(Million
Taka)
2001-02 2875 88060 89 17340 2964 105400-
28.8
2002-03 2101 116526 104 20670 2205 137196 (+) 30
2003-04 1624 135461 130 26440 1754 161901 (+) 18
2004-05 1469 140046 120 52977 1589 193023 (+) 19
2005-06 1754 183703 135 249857 1889 433560 (+) 125
2006-07 1930 196581 191 119251 2121 315832 (-) 27
2007-08 1615 193530 143 54328 1758 247859 (-) 22
2008-09 1336 171174 132 147496 1468 318671 (+) 27
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Fiscal
Year
Local Investment
Proposals
Registered
Foreign /JV
Investment
Proposals
Registered
Total Investment
Proposals
Registered
Growth
in
ProjectValue
(%)Project
s
Project
Value
(Million
Taka)
Projec
ts
Project
Value
(Million
Taka)
Project
s
Project
Value
(Million
Taka)
2009-10 1470 274137 160 62608 1630 336743 (+) 5
2010-11 1746 553690 196 365243 1942 918933 (+) 173
2011-12 1735 534769 220 344163 1955 878932 (-) 4
Source: Monthly Report (2011-12), Policy & Planning, Board of Investment
Local Investment Registration
During FY 2001-02, the value of projects registered with BOI was Tk. 88,060 million which
increased to Tk.5,34,769 million in FY 2011-12. As it will appear from the chart below, the
service sector (29.00%) was the largest sector registered during this period. Other major sectors
include textiles (19.74%), chemicals (17.86%) and agro-based (11.44%).
Chart 14.3 Sector wise Local Investment Projects Registered with BOI FY 2011-12
Food & Allied
2.02%
Agrobased
11.44%
NEC
9.18%
Services
29.00%
Printing &
Publications
0.78%Leather & Leather
Goods
0.26%Chemical
17.86%
Engineering9.27%
Glass & Ceramics
0.45%
Textiles
19.74%
Source: Board of Investment
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Table14.3 below presents the sector wise distribution of local investment projects registered with
BOI during the period from FY 2005-06 to 2011-12
Table14.3: Sector wise Distribution of Local Investment Projects
Sector’s Name 2005-2006
(Million Tk)
2006-2007
(Million Tk)
2007-2008
(Million Tk)
2008-2009
(Million Tk)
2009-2010
(Million Tk)
2010-2011
(Million Tk)
2011-20
(Million T
1. Agro basedIndustry
9656.549 8161.801 9511.075 8223.292 23251.031 52006.881 61195.2
2. Food & AlliedIndustry
3137.449 4265.611 4370.736 4027.625 21573.717 17440.413 10822.
3. Textile Industry89297.301 135848.373
108091.749 79451.151 89661.896 154036.54
4
105575
4. Printing &PublishingIndustry
3120.821 5786.504 3668.347 1801.317 2739.027 2556.144 4151.3
5. Tannery &LeatherIndustry
2277.462 737.764202.740 330.362 2188.389
2018.3201385.7
6. ChemicalIndustry
35878.957 15234.209 22364.674 30555.931 77462.814 65092.305 95491.4
7. Glass &CeramicsIndustry
95.795 969.1431720.112 4055.210 730.214
2076.3702399.3
8. EngineeringIndustry
21658.094 9596.208 18568.696 27615.804 29352.127 35861.584 49581.3
9. ServiceIndustry
17671.410 15341.61423567.714 14648.908 26224.698 222317.02
2
155061
10. Miscellaneous909.128 639.675 1434.230 465.316 952.969 284.883 49.105.0
Total 183702.966 196580.902 193530.073 171174.916 274136.882553690.46
6
534769
Source: Board of Investment
Foreign and Joint Venture Investment Registration
During FY 2005-06, the value of projects registered with BOI was US$ 3,353 million which
increased to US$ 4,469 million in FY 2011-12. Table14.4 shows that engineering (82.99%) was
the largest sector registered during this period. Other major sectors include textiles (5.79%),
chemicals (3.84%) and food and allied products (2.30%).
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Chart 14.4: Sector wise joint venture and 100% foreign projects FY 2011-12
Textiles
5.79%
Glass & Ceramics
0.15%
Engineering
82.99%
Chemical
3.84%Leather & Leather
Goods
0.41%
Printing &
Publications
0.02%
Services
1.94% NEC0.31%
Agrobased
2.25%
Food & Allied
2.30%
Source:BOI
The following table presents the recent trend of joint venture and 100% foreign investment
registration during the period from FY 2005-06 to FY 2011-12
Table 14.4: Sector wise Distribution of Foreign and Joint Venture Investment projects
Sector Name2005-2006
(Million
US$)
2006-
2007
(Million
US$)
2007-2008
(Million
US$)
2008-2009
(Million
US$)
2009-2010
(Million
US$)
2010-2011
(Million
US$)
2011-201
(Million
US$)
1. Agro basedIndustry
15.925 36.416 35.479 22.557 22.231 122.516 96.90
2. Food & AlliedIndustry
1.218 3.007 1.898 1.997 0.092 12.836 98.91
3. Textile114.079 181.026 274.870 36.402 72.521 160.143 249.50
4. Printing &PublishingIndustry
0.147 4.428 0 0 2.697 0.000 0.75
5. Tannery &LeatherIndustry
6.881 8.388 0.375 2.151 13.661 5.984 17.52
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Sector Name
2005-2006
(Million
US$)
2006-
2007
(Million
US$)
2007-2008
(Million
US$)
2008-2009
(Million
US$)
2009-2010
(Million
US$)
2010-2011
(Million
US$)
2011-201
(Million
US$)
6. ChemicalIndustry
1878.186 44.563 57.435 5.631 61.698 69.535 165.30
7. Glass &CeramicsIndustry
0 0 0.169 17.695 0 26.373 6044
8. EngineeringIndustry
23.203 25.911 77.578 121.409 17.364 1285.935 3574.13
9. ServiceIndustry
1313.860 1156.364 176.512 1863.841 651.196 3431.525 83.66
10. Miscellaneous0 0.620 0.045 0 0.092 0.735 13.35
Total 3353.499 1460.723 624.361 2071.683 841.552 5115.582 4306.51
Source: Board of Investment
Sources of Foreign and Joint Venture Registered
The sources of foreign and joint venture projects registered in FY 2011-12 represent 34
countries/economies from different regions of the world. South-East Asia is the largest source in
terms of investment amount followed by South, East and West Asia, European Union, North
America and CIS region. Table 14.5 below presents the source-wise distribution of the BOI-
registered new projects in FY 2011-12
Table 14.5: Sources of the Joint Ventures and 100% Foreign Investment Projects
Source of Joint
venture and 100%
Foreign Investment
2005-
2006
(Mill.
US$)
2006-
2007
(Mill.
US$)
2007-
2008
(Mill.
US$)
2008-
2009
(Mill.
US$)
2009-
2010
(Mill.
US$)
2010-
2011
(Mill.
US$)
2011-
2012
(Mill.
US$)
1. Saudi Arabia 1846.273 0 0 1732.578 471.820 7.086 0
2. America 46.294 17.887 39.550 15.348 143.625 846.707 16.416
3. Thailand 2.744 3.996 0 54.908 3.043 97.523 1177.723
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Source of Joint
venture and 100%
Foreign Investment
2005-
2006
(Mill.
US$)
2006-
2007
(Mill.
US$)
2007-
2008
(Mill.
US$)
2008-
2009
(Mill.
US$)
2009-
2010
(Mill.
US$)
2010-
2011
(Mill.
US$)
2011-
2012
(Mill.
US$)
22. Bermuda 0 0 0 0 0 0.492 33.884
23. France 2.561 1.398 1.460 2.249 0 1.121 10.104
24. Indonesia 4.288 0 27.504 17.134 0 1.940 0
25. Lebanon 0 0 0 0 0 25.093 0
26. Mauritius 0 0 0 0 0 1.348 0
27. Philippines 0 0.492 0 0 20.286 6.740 0
28. Sweden 0 0.704 0.128 0.890 3.073 101.702 1.545
29. Switzerland 1.342 4.198 1.610 0 0 0.700 11.529
30. Finland 0 3.706 0 1.126 2.978 1.420 0.624
31. KSA 1236.121 1096.103 47.686 17.695 0 9.132 2.312
32. British Virgin
Island 0 4.363 0 0 3.193 0.886 6.076
33. German 0.058 8.331 8.305 72.437 2.145 83.884 26.740
34. Australia 2.266 0 0 0.700 3.682 0.098 0.129
35. Greece 0.258 0.714 0 0.413 0.155 0.260 0
36. Portugal 0 0 0 0 0 0 0
37. Spain 0.313 2.090 1.057 0.183 0 0 0.760
38. Poland 0 0 2.190 0 0 0 0
39. Belgium 0.424 0 0 0 0 0 1.263
40. Egypt 0.542 0 0 0 0 0 0
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Source of Joint
venture and 100%
Foreign Investment
2005-
2006
(Mill.
US$)
2006-
2007
(Mill.
US$)
2007-
2008
(Mill.
US$)
2008-
2009
(Mill.
US$)
2009-
2010
(Mill.
US$)
2010-
2011
(Mill.
US$)
2011-
2012
(Mill.
US$)
41. Hungary 1.406 0 0 0 0 0 0
42. Norway 0.025 0 0 0 0 0.224 23.600
43. Vietnam 3.195 0 0 0 0 0 0
44. Jordan 0 0.394 0 0 0 0 0.676
45. Kuwait 0 0.130 0 0 0 0 1.043
46. Austria 0 0.707 0.271 0 0 0 0
47. Malta 0 0 0 0 0 0 3.156
48. USE 0 0 0 0 0 1.500 1.894
Total 3353.499 1460.723 624.361 2071.683 841.552 5115.582 4306.514
Source: Board of Investment, Bangladesh.
Import of Capital Machinery
During FY 2011-12, the total import of capital machinery in Bangladesh stood at US$2005 million.
Graph 14.5 below shows the trend of capital machinery import during the period from FY2001-02 to
FY2011-12.
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Source: Bangladesh Bank
Facilitation Services to Investors
To support an accelerated growth in manufacturing GDP, the Board of Investment has been
strengthening its facilitation services to the investors. Among various capacity development
initiatives, an online service tracking system is already in place. Preparatory works are in
progress to install and implement an Online Registration System.
Flow of Private Investment
Almost 78 percent of total investment in Bangladesh is contributed by the private sector. In the
FY2010-11, total private investment stood at Tk. 1,53,208 crore which went up to Tk.1,75,104
crore in FY 2011-12. The following Graph presents a trend of private investment over the past
decade:
Graph14.6 Trend in Total Private Investment (In Crore Taka)
Source: BBS
2001-02,
562
2002-03,
568
2003-04,
786
2004-05,
1211
2005-06,
1539
2006-07,
19292007-08,
1664 2008-09,
1420
2009-10,
1595
2010-11,
23242011-12,
2005
I n m i l l i o n U S
D o l l a r
Graph 14.5: Trend in Capital Machinary Import
45,840 51,720 59,370 67,920 77,55089,860
105,090120,942
134,691153,208
175,104
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
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Employment Opportunities
Investment in the industrial sector generates large number of managerial, technical, supervisory
and skilled-unskilled job opportunities. In the FY 2011-12,a total of 4,51,114 job opportunities
were created/committed in the BOI-registered projects (Graph:14.8).
Graph 14. 7 Employment Opportunities by the BOI-Registered Projects (Person)
Source: Board of Investment, Bangladesh.
Privatisation of State Owned Enterprise
The Privatisation Commission since its inception in 1993, privatised 77 (seventy seven) state-
owned enterprises (SOEs) up to June, 2012. Out of which 56 (Fifty-six) enterprises were
privatised through direct sale and 21(Twenty one) enterprises were privatised by offloading
shares. A sum of Tk. 794.22 crore was deposited with the exchequer received as sale-proceeds
of those enterprises. On the other hand, action is underway for privatising 24 (twenty four)
enterprises. Moreover, a proposal for privatising 2 (two) enterprises has been sent to the CabinetCommittee on Economic Affairs, and tender has been invited for leasing out 2 (two) enterprises
on long-term basis. Besides these, evaluation of 6 (six) enterprises is going on. On completion of
evaluation, tender will be invited from the prospective bidders. A committees was formed to
identify the additional lands of public industrial and commercial enterprises with a view to
enhancing the investment and ensuring the best use of resources. By now, two meetings of the
Committee have been held. A decision was taken to inform the Commission about the identified
additional lands of different corporations.
Private Sector Participation in Various Sectors of the Economy
Infrastructure Sector
Bangladesh Private Sector Infrastructure Guidelines
The Government formulated Bangladesh Private Sector Infrastructure Guidelines to foster
private sector participation in the projects for the development of infrastructure of the country.
Detailed procedures for undertaking infrastructure projects in various sub-sectors on private
373,625
273,754
319,516 425,232
418,529
458,478 410,744
308,037
330,663
503,662451,114
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
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initiative have been provided in the guidelines. The sub-sectors include, among others:
telecommunication; power generation, transmission and distribution services; development of
ports; building highways and expressways; constructing bridges; tunnels and flyovers;
exploration of oil and gas production- transmission-distribution; development of airports and
terminals, tourism; development of industrial estate; health and education; waste management
and environment.
Textiles
As of 2012, there are 407 cotton and synthetic spinning mills in the country of which 385 units
belong to the private sector. The year-wise production of yarn and fabrics in these mills during
the period from FY2000-01 through FY2010-11 is shown in the table below:
Table 14:6 Production of Yarn and Fabrics in Public and Private Sector
Year Yarn Production (In Million Kg.) Fabric (In Million Metres)
Public
sector
Private
sectorTotal
Public
sector
Private
sectorTotal
2000-01 15.81 186.76 271.57 - 1,845.00
2001-02 15.39 204.81 298.50 - 2,050.00
2002-03 9.35 330.65 340.00 - 2,200.00 2,200.00
2003-04 9.70 370.30 380.00 - 2,750.00 2,750.00
2004-05 9.48 440.52 450.00 - 3,100.00 3,100.00
2005-06 8.00 530.00 538.00 - 4090.00 4090.00
2006-07 8.87 600.00 608.86 - 4910.10 4910.00
2007-08 7.99 702.00 710.00 - 5800.00 5800.00
2008-09 2.33 877.00 879.33 - 6380.00 6380.00
2009-10 1.14 950.00 951.14 - 7200.00 7200.00
2010-11 2.40 1105.00 1107.40 - 8,287.50 8,287.50
2011-12 0.93 1050.00 1050.93 7,875.00 7,875.00
Source: Jute and Textile Ministry
It appears from the above table that the production of yarn by private sector in FY2000-01 was
recorded 186.76 million kg, which increased to 1050 million kg in FY 2011-12. On the other
hand, the fabric production in FY2000-01was recorded 1,845 million metres, which increased to7,875.00 million metres in FY 2011-12.
Handloom
As per Handloom Census, 2003 the private sector handloom industry could employ about 0.9
million people indirectly and 0.6 million people directly. There are about 0.51 million handloom
in the country out of which 0.31 million looms are in operation and the remaining 0.20 million
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were closed due to non- availability of working capital. Value addition of handloom industry is
about Tk. 150.00 million per annum. Bangladesh Handloom Board provided working capital to
the poor weavers under a micro-credit programme amounting to Tk. 7.60 million in 2011-12.
The cumulative amount of micro-credit up to FY 2011-12 stood at Tk. 518.10 million.
Jute
At present, there are as many as 109 jute mills and 86 spinning mills under the private sector. In
order to produce diversified jute products and to increase its uses ,the private sector
entrepreneurs have been provided with financial and technical assistance by the Government to
take appropriate initiative to diversify jute products. The table below presents a comparative
position of the export value of jute products during the period from FY 2000-2001 to FY 2011-
12
Table 14.7 Export Value of Jute Products ( Public and Private )
(crore Tk.)
Fiscal Year PUBLIC PRIVATE
BJMC BJMA BJSA
2000-01 599.58 134.42 469.89
2001-02 536.76 136.25 557.71
2002-03 519.71 141.37 583.85
2003-04 440.53 179.18 624.71
2004-05 396.21 192.24 955.88
2005-06 508.25 401.31 1161.85
2006-07 438.50 447.96 1335.19
2007-08 488.81 542.39 1581.61
2008-09 433.18 463.22 1,479.93
2009-10 654.69 746.14 2,548.732010-11 943.42 681.52 3,396.17
2011-12 1058.13 919.76 3,367.02
Source: Jute and Textile Ministry
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Energy and Power
Power Sector
In FY2011-12 access to electricity in the country is about 53 percent and per capita generation
including captive is 272 kWhr. To provide access to electricity to all by the year 2020, the
Government has been encouraging private investment in the power sector. Meanwhile, the
Government has prepared the Power System Master Plan 2010. According to the Plan (PSMP-
2010) maximum demand will be about 10,000MW, 19,000MW and 34,000 MW by the year
2015, 2021 and 2030 respectively. To meet this demand short, medium and long term electricity
generation, distribution and transmission lines expansion projects are at various stages of
implementation which will add 24,000MW and 39,000MW additional electricity to the national
grid by the year 2021 and 2030 respectively.
Information and Communication Technology (ICT)
I CT I ncubator Centre
In order to develop software industry, an 'ICT Incubator’ has been established in Dhaka.
Currently as many as 41 entrepreneur software companies are operating their IT business.
Hi-tech Park
The Hi-tech Park Authority has started establishing a Hi-Tech Park at Kaliakoir in Gazipur
district to provide a wide range of modern infrastructure and administrative supports to create
knowledge-based industries and hi-tech industries and also to attract world class transnational
investors . The Park will be established under Public-Private Partnership (PPP) initiative.
Software Technology Park
The government has taken a decision to establish a Software Park to crowd in investment in ICT
industries. According to the decision, the proposed Park will be established at Janata Tower
under Public Private Partnership initiative.
Export of Software
Currently, more than 100 software and IT service companies in Bangladesh are exporting
software and providing their services to 30 different countries.Table-14.8 shows IT software
export during the period from FY 2004-05 to FY 2011-12.
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Table-14.8 IT Software Exports
FY Million in US$ Growth rate2004-05 12.682005-06 27.012006-07 26.08 -3.442007-08 24.82 -4.832008-09 32.9 24.552009-10 33.5 1.822010-11 35.3 5.09
Source: BASIS
Software applications and IT-related services are also available in the field of custom business
application, contract programming services, web content development, internet-e-government
software tools, data conversion and transcription services, call centres and BPO (Business
Process Outsourcing) services.
Telecommunication Sector
Six private mobile operators and nine Public Switched Telephone Network operators (PSTN)
have been allowed to operate to facilitate the customers with voice services. For narrowing the
gap and for the liberalisation of innovative VoIPs technologies, a number of IP Telephony
licenses have been issued. A good number of internet service providers, BWA (WiMAX)
operators and the mobile as well as PSTN operators are playing the same role for data service.
Infrastructure operators and the gateway operators (IGW, IIG, & ICX) are the important parts of
the telecom-skeleton of Bangladesh.
With the increasing private investment, Bangladesh has stepped into a new digital era, replacing
analogue technology. Two BWA (WiMAX) operators have already started providing their
service on commercial basis. IP telephony license (IPTSP) has been opened for ISP operators as
an overlay service and already 40 licenses have been issued. 12 Vehicle Tracking Service
Licenses have been issued. Request for Proposal (RFP) has been issued to 5 international
consultancy firms to run 3G licensing procedures. In 2012, the Regulatory and Licensing
Guidelines for renewal of the Cellular Mobile Telecom Operator License has been issued. The
approximate value of accumulated revenue from these license renewals will be Tk. 8,000 crore.
The total number of mobile phone subscribers up to June 2012 is shown in Table 14:9 below
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Table 14:9 The Total Number of Mobile Phone Subscribers
O erators Subscriber in Million1 Grameen Phone Ltd GP 39.292 Orascom Telecom Ban ladesh Limited Ban lalink 25.493 Robi Axiata Limited (Robi) 19.21
4 Airtel Ban ladesh Limitede Airtel 6.735 Pacific Bangladesh Telecome Limited (Citycell) 1.696 Teletalk Bangladesh Ltd (Teletalk) 1.358
Total 93.768
Source: http://www.btrc.gov.bd
Transport Sector
Air Transport
In line with the privatisation policy, the Civil Aviation Authority has planned to privatise the
non-regulatory operations of the airport. Meanwhile, a local private enterprise has been
appointed to provide the washing and cleaning services at Shah Amanot International Airport.
Besides, there is a plan to appoint local and foreign institutions to manage other operations of the
airport through outsourcing.
As per recommendation of the Privatisation Commission, Biman was converted into a Public
Limited Company (PLC) by retaining 100 percent ownership by the Government. Biman now
being a PLC is enjoying more autonomy for taking commercial decisions.
Water Transport
The presence of private sector is mainly confined to transportation of passengers and cargoes in
inland waterways. It caters approximately 95 percent transportation of passengers and cargoes.
Besides, the private sector operates different launch landing stations including the rural ones
through the lease arrangement that are provided with pontoon facilities by BIWTA. These
stations are scattered all over the inland waterways network, which are controlled by BIWTA’s
21 river ports. Moreover, the repair and maintenance of vessels and pontoons are done at local
private dockyards. Dredging works are being carried out by private sector under a project titled,
“Introduction of Circular Waterways in and around Dhaka city (2nd phase).” Besides the above
dredging programme, BIWTA has taken initiatives for carrying out maintenance of dredgers
including hydrographic survey works by the private sector. Apart from this, Chittagong Port
Authority (CPA) and BIWTA are constructing a container terminal jointly at Pangaon. However,
the responsibilities of its operation will completely be handed over to private entrepreneurs.
Moreover, implementation of another project titled, “Establishment of River Port at Nowapara,
Bhairab – Ashuganj and Barguna” is underway. Upon its completion, the operational
responsibilities of the river ports will also be handed over to the private sector
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Tourism
Bangladesh Parjatan Corporation has leased out motels Probal, Upal, Laboni, at Sylhet, Rest
house at Moulovibazar , Ruchita restaurant and bar ,Sakura restaurant and bar, Children
amusement park , Bhatiyari golf club, Foy’s lake with a view to providing improved service to
the tourists and to generate more revenue.
Banking and Insurance
In the banking sector, as many as private, local and foreign commercial banks are operating
in Bangladesh with a network of 3,055 and 63 branches respectively.
At present, 43 general insurance companies and 17 life insurance companies are engaged in
insurance business under the private sector. Besides, Jiban Bima Corporation and Sadharan
Bima Corporation are engaged in insurance business under Government sector. Insurance
Development and Regulatory Authority regulates the insurance companies as well as collectsrevenue from annual renewal fees, agent license fees, surveyor certificate renewal fees etc.
In general insurance sector, Sadharan Bima Corporation along with other 43 private general
insurance companies earned Tk. 1657.42 crore in 2012?. In 2009, the premium income was Tk.
1389.77 crore. The rate of premium income of the general insurance companies grew by 16.15%
. The statistics of premium income from general insurance business are show in Table No. 14.10
below:
Table 14.10 Premium Income from General Insurance
(Tk.in crore )
Total Premium
Percentage
of
Governme
nt Sector
(%)
Percentag
e of
Private
Sector
(%)
Growth Rate
Year
Governme
nt Sector:
Sadharan
Bima
Corporati
on
Insurance
Companies
under
Private
Sector
Total
Government
Sector:
Sadharan Bima
Corporation
(%)
Insurance
Companies
under
Private
Sector
Total (%)
2001 76.00 422.90 418.92 15.23 84.77 23.09 15.97 17.01
2002 81.86 456.46 535.32 15.29 84.71 7.71 7.11 17.80
2003 76.66 517.81 594.47 12.90 87.10 (-)6.35 14.19 11.05
2004 77.86 601.88 679.74 11.45 88.55 1.57 17.16 15.14
2005 88.61 718.67 807.28 10.98 89.02 12.13 19.40 18.76
2006 104.45 802.72 907.17 11.51 88.49 11.70 11.70 12.37
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2007 126.58 941.731068.3
111.85 88.15 17.48 17.31 17.73
2008 141.90 1116.401258.3
011.28 88.72 12.10 18.55 17.78
2009 161.35 1228.421389.7
711.61 88.39 13.71 10.03 10.45
2010 165.99 1491.431657.4
210.01 89.99 2.80 17.33 16.15
2011 197.47
Source: Banking division
In life insurance sector, Jiban Bima Corporation along with other 17 private life insurance
companies earned Tk. 5,846.58 crore (of life insurance premium) in 2010 which was Tk.
4,996.04 crore in 2009. The statistics of premium income from life insurance business are shown
in Table No. 14.11 below:
Chart 14.11 Premium Income from Life insurance(Tk. In crore)
year Total Premium Percentageof
Governmentsector (%)
Percentageof Privatesector (%)
Growth rate
Jiban Bimacorporation
underGovernment
sector
Lifeinsurancecompanies
under privatesector
Total Governmentsector :
SadharanBima
Corporation(%)
Insurancecompanies
under privatesector
Total
(%)
2001 150.00 668.09 818.09 18.34 81.66 (-) 12.45 23.51 16.59
2002 179.00 834.83 1013.83 17.66 82.34 19.33 24.96 23.93
2003 152.00 1058.72 1210.72 12.55 87.45 (-) 15.08 26.82 19.42
2004 197.00 1335.23 1532.23 12.85 87.14 29.61 26.11 26.00
2005 203.65 1841.09 2044.74 9.95 90.04 3.38 37.81 33.45
2006 223.35 2138.00 2361.36 9.46 90.54 9.67 16.13 15.48
2007 264.98 2916.51 3181.49 8.33 91.67 18.64 36.41 34.70
2008 307.81 3597.45 3905.26 7.88 92.12 16.16 23.35 22.75
2009 400.25 4595.79 4996.04 8.01 91.99 30.03 27.75 27.93
2010 338.81 5507.77 5846.58 5.80 94.20 - 18.13 16.56 14.55
2011 307.88
JUNE-2012
83.79
Source: Banking division
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Education Sector
The Government has been offering extensive support to primary, secondary, vocational,
madrasa and higher education in the private sector alongside the public sector, to promote the
quality of education and to ensure 'education for all'. Private sector participation in education is
being supported to minimise pressure on public expenditure as well as to lessen our dependenceon foreign countries for education. This initiative encouraged the establishment of many schools,
colleges, madrasas and universities in the private sector.
To meet the rising demand for higher education , the Private University Act 2010 was passed by
Parliament allowing establishment of private universities. This has resulted in the establishment
of 62 private universities in the country.
Health Sector
Currently, 44 medical colleges, 12 dental colleges, 2501 hospitals and clinics with more than42,327 beds and 5721 diagnostic centres in private sector are providing health services. Apartfrom this, several NGOs are engaged in delivering health services under HNSDP. The scope of public- private partnership in health sector is widening day by day. Under the PPP strategy, theGovernment has recently taken an initiative to expand kidney dialysis service of two publichospitals, namely National Institute of Kidney Disease and Urology (NIKDU) and ChittagongMedical College (CMC) through private sector. In addition, there are as many as 52 Governmentapproved Institutes of Health Technology to create efficient human resources in the health sector.There are also 41 private blood banks in the country to provide emergency service to the
patients.The pharmaceutical sector of Bangladesh has attained self- sufficiency in the area of
manufacturing high quality drugs. The local pharmaceutical manufacturers cater to 97 percent of
the country's demand while expanding their business in the global market. Bangladesh exports
different drugs of 187 brands to 87 countries of the world. The pharmaceutical market has grown
substantially in the last few years. Table 14.2 below shows the trends of pharmaceutical exports
over the past decade:
14.12 Export of Finished Drug and Raw Materials of Drug
(crore Tk.) Year Finished drug Raw materials of drug Country (importer)
2001 31.80 1.10 17
2002 40.69 4.30 32
2003 54.55 8.73 51
2004 140.00 13.89 62
2005 142.10 14.75 67
2006 251.99 14.34 61
2007 234.71 13.03 67
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Year Finished drug Raw materials of drug Country (importer)
2008 313.70 14.61 71
2009 335.21 11.96 73
2010 327.43 5.12 84
2011 421.22 4.93 87Source: Ministry of Health and Family Welfare.